Who Will Be The Greater Fool? Governments Move To Guarantee All Bank Debt.
One could easily anticipate a tremendous amount of foolishness as this cycle enters the economic phase but nothing is more foolish than the recent announcement that European countries are going to guarantee all bank debt.
So, who is the greater fool? You are if you let any politician in your country actually pass this ridiculous notion. Regardless of whether most economists have embraced delusional beliefs over the last half century, one thing they can surely agree to is that economic vibrancy cannot be achieved by guaranteeing all debt. Especially when there is so much of it. There is no free lunch. Politicians are setting the seeds of a worst case outcome by too much meddling.
I guess it's time to present my business plan to the ECB for a Jack Nicklaus-designed golf course in Barrow, Alaska.
So, who is the greater fool? You are if you let any politician in your country actually pass this ridiculous notion. Regardless of whether most economists have embraced delusional beliefs over the last half century, one thing they can surely agree to is that economic vibrancy cannot be achieved by guaranteeing all debt. Especially when there is so much of it. There is no free lunch. Politicians are setting the seeds of a worst case outcome by too much meddling.
I guess it's time to present my business plan to the ECB for a Jack Nicklaus-designed golf course in Barrow, Alaska.
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